In India, the auto industry is one of the largest industries and is one of the key sectors of the economy. Today, India is emerging as one of the world’s fastest growing passenger car markets and second largest two-wheeler manufacturer. It is also home to the largest motorcycle manufacturer and the fifth largest commercial vehicle manufacturer.
The emerging trends in the Indian Automobile Industry are the following:
1. Globalization- Globalization is forcing Indian auto majors to consolidate, upgrade technology, access new markets, enlarge product range and cut costs.
2. Export hub for SUVs- India is emerging as an export hub for sports utility vehicles. The global automobile majors are looking to leverage India’s cost-competitive manufacturing practices and are assessing opportunities to export SUVs to Europe, South Africa and Southeast Asia. India can emerge as a supply hub to feed the world demand for SUVs.
3. Export of Compact cars to Europe- India has the largest base to export compact cars to Europe. Hybrid and electronic vehicles are new developments in the auto industry and India is a key market for them.
The advent of newer technology & globalization has only paved the way for this sector to grow & flourish in the future.